Overtime Calculator 2026 — Your Real OT Take-Home After Taxes
Calculate your overtime pay and real after-tax take-home. Most calculators only show gross — this one shows what actually lands in your pocket after federal tax, state tax, and FICA. Overtime is taxed at your marginal rate, not a special rate, and it's always worth earning.
Your Hours & Pay
Typically 40 for full-time
Hours beyond your regular schedule
Default 52 — reduce for unpaid time off
OT Gross / Week
$375
$38/hr × 10 hrs
OT Net / Week
$288
After all taxes
Overtime is NOT taxed at a higher rate
Your overtime is taxed at your marginal rate of 22.0%. You keep $29 of every overtime hour you work.
Annual Comparison
| Without OT | With OT | |
|---|---|---|
| Annual Gross | $52,000 | $71,500 |
| Federal Tax | −$4,070 | −$7,102 |
| State Tax | −$0 | −$0 |
| FICA (SS + Medicare) | −$3,978 | −$5,470 |
| Annual Take-Home | $43,953 | $58,928 |
| Extra from OT | — | +$14,976/yr |
Quick Answer
At $20/hour, 10 hours of weekly overtime (1.5x) adds approximately $247 to your weekly paycheck after federal taxes — not the $300 gross. At $25/hour, 10 OT hours adds approximately $309/week after tax. You keep roughly 75–82 cents of every overtime dollar depending on your tax bracket. Use the calculator above for your exact number.
I've worked in a lot of different jobs across a lot of different industries — construction, whole foods, logistics, transportation. And in most of those jobs, when the opportunity for overtime showed up, you took it. Everything adds up in your pocket at the end of the week.
But the question I always wanted to answer was specific: if I put in an extra four hours this week, what does that actually mean in dollars I take home? Not the gross number on paper — the real number that hits my account.
That's what this calculator is for. You put in your rate, your hours, your state, and it tells you exactly what you're going to get from those extra hours. Then you can make the decision — is it worth staying? Is the extra time worth it for what lands in your pocket? For me, knowing that number made it easier to commit to the extra hours when it made sense, and easier to say no when it didn't.
How Much Does Overtime Actually Pay After Taxes?
The overtime rate is 1.5x your regular hourly rate — time and a half. But after taxes, you don't keep all of that. Here's the real number by hourly rate, assuming 10 overtime hours per week, single filer, Texas:
Weekly overtime earnings after federal tax — 10 OT hours at 1.5x
| Regular Rate | OT Rate (1.5x) | OT Gross/Week | OT Net/Week | You Keep |
|---|---|---|---|---|
| $15/hour | $22.50/hour | $225 | $183 | 81.3% |
| $18/hour | $27.00/hour | $270 | $219 | 81.1% |
| $20/hour | $30.00/hour | $300 | $244 | 81.3% |
| $25/hour | $37.50/hour | $375 | $298 | 79.5% |
| $30/hour | $45.00/hour | $450 | $351 | 78.0% |
| $35/hour | $52.50/hour | $525 | $401 | 76.4% |
Single filer, Texas (no state tax), 40 regular hours/week. State taxes reduce these numbers further.
The pattern: you keep roughly 76–81 cents of every overtime dollar. The rest goes to federal taxes and FICA. In states with income tax, expect to keep 68–75 cents instead.
The Biggest Misconception About Overtime Tax
Here's the thing most people get wrong: overtime is NOT taxed at a special higher rate.
Overtime is taxed the same way as regular income — at your marginal federal rate. What happens is that overtime pushes your total income higher, which can move more of your earnings into a higher bracket. But only the dollars above the bracket threshold get taxed at the new rate. Not all of your overtime. Not all of your income.
Example — $20/hour, 10 regular OT hours every week, single filer, Texas
| Without Overtime | With Overtime | |
|---|---|---|
| Annual Gross | $41,600 | $57,200 |
| Federal Tax | $3,241 | $5,989 |
| FICA (7.65%) | $3,182 | $4,376 |
| Annual Take-Home | $35,177 | $46,835 |
| Extra from OT | — | +$11,658/year |
Those 10 weekly overtime hours add $11,658 to your annual take-home. That's nearly a full extra month of regular pay.
With vs Without Overtime — Annual Impact by Rate
This is the number worth knowing before you decide whether to pick up extra hours regularly:
40 regular hours + 10 OT hours/week, 52 weeks, Single filer, Texas
| Rate | Annual w/o OT | Annual with OT | Extra Take-Home |
|---|---|---|---|
| $15/hr | $26,381 | $35,208 | +$8,827 |
| $18/hr | $31,832 | $42,436 | +$10,604 |
| $20/hr | $35,177 | $46,835 | +$11,658 |
| $25/hr | $43,952 | $58,669 | +$14,717 |
| $30/hr | $52,727 | $70,503 | +$17,776 |
Even at $15/hour, consistent overtime adds nearly $9,000/year to your take-home. In construction, logistics, or any hourly industry where overtime is available regularly — that number compounds fast over a career.
Double Time: When 2x Applies
Some industries and union contracts pay double time (2x) for certain hours — typically over 12 hours in a single day or for Sunday/holiday work. In California, double time kicks in for hours over 12 in a day or over 8 on the 7th consecutive day of work.
Double time after-tax by rate — 10 hours/week, single filer, Texas
| Regular Rate | Double Time Rate | OT Gross/Week | OT Net/Week |
|---|---|---|---|
| $15/hour | $30.00/hour | $300 | $240 |
| $20/hour | $40.00/hour | $400 | $318 |
| $25/hour | $50.00/hour | $500 | $391 |
| $30/hour | $60.00/hour | $600 | $460 |
At $20/hour with double time, 10 extra hours per week adds $318 after tax — $74 more per week than time-and-a-half on the same hours.
Industries Where Overtime Is Most Common
From my own experience across different fields, overtime availability varies a lot by industry. The sectors where it shows up most consistently:
Construction — Project deadlines drive overtime. Seasonal peaks in spring and summer mean regular availability. Union contracts often set overtime rules clearly.
Logistics and transportation — Peak seasons (holidays, Q4), driver shortages, and warehousing demand create consistent OT opportunities. Many logistics roles are built around it.
Healthcare/nursing — Chronic staffing shortages mean overtime is available almost everywhere. Travel nurses especially structure their income around OT.
Manufacturing — Production quotas and shift coverage create predictable overtime windows.
Retail/wholesale — Holiday seasons create temporary but significant overtime availability.
In all of these, the math is the same: knowing your real after-tax OT number lets you make a real decision about whether those extra hours are worth it.
How to Think About Overtime as a Financial Tool
When I was in logistics, the way I thought about overtime shifted once I started calculating the actual take-home. It wasn't just “extra money” — it was a tool. Four extra hours per week at $25/hour is $300 gross. After taxes, roughly $237. Over 12 weeks, that's $2,844 in your pocket — enough to build an emergency fund, pay down debt, or make a real dent in a financial goal.
The key is knowing the number before you commit. If overtime is available and you're evaluating whether it's worth the time, the calculator gives you the answer in 30 seconds. You don't have to guess.
Overtime Calculator by State
No-tax states keep more of every OT dollar — high-tax states take an extra bite. See the breakdown for your state.
Frequently Asked Questions
Is overtime taxed at a higher rate?
No. Overtime income is taxed at the same rates as regular income — your normal federal and state marginal rates. What can happen is that overtime pushes your total annual income into a higher bracket, which means more of your income (not just the OT) gets taxed at the higher rate. But this is a function of earning more, not a special overtime penalty.
How much is time and a half on $20/hour?
$30/hour gross. After federal taxes and FICA for a single filer in Texas, you take home approximately $24.40 for each overtime hour — about 81 cents on the dollar.
How much is time and a half on $25/hour?
$37.50/hour gross. After taxes for a single filer in Texas, approximately $29.80 per overtime hour — about 79.5 cents on the dollar.
How much is time and a half on $30/hour?
$45/hour gross. After taxes for a single filer in Texas, approximately $35.10 per overtime hour — about 78 cents on the dollar.
How many hours of overtime before my tax bracket changes?
It depends on your regular income. A single filer earning $41,600/year (40 hrs/week at $20/hour) is in the 12% federal bracket. Adding 10 OT hours/week brings annual income to $57,200 — still in the 22% bracket. The bracket threshold for single filers is $48,475 of taxable income (after standard deduction). Use the calculator to see your specific situation.
Does overtime affect my annual tax return?
Yes — if your employer withholds taxes on overtime at your regular withholding rate, you may owe additional taxes at year-end if the overtime pushed you into a higher bracket. Consider adjusting your W-4 withholding if you work significant overtime regularly.
What is double time and when does it apply?
Double time pays 2x your regular hourly rate. It's not federally mandated — federal law only requires 1.5x for hours over 40/week. Double time is established by state law (California requires it for hours over 12/day) or union contracts. Check your employment agreement or state labor laws for specifics.
How much can overtime add to my annual income?
At $20/hour with 10 weekly OT hours (1.5x) for 52 weeks, overtime adds approximately $15,600 gross and $11,658 to your annual take-home in a no-tax state. At $25/hour, that's $19,500 gross and $14,717 net. Consistent overtime compounds significantly over time.